Barnes & Noble chairman agrees to obtain board consent before making a bid

October 19, 2010

New York City Leonard Riggio, the chairman of bookseller Barnes & Noble, said he won't form a group of investors to buy the company without consent of a special committee formed to evaluate offers, the Associated Press reported.

In a filing with the Securities and Exchange Commission on Tuesday, Riggio said he is "committed to a fair and transparent process that is designed to ensure that no potential bidder or investor has any advantage."

Barnes & Noble put itself up for sale in August response to pressure from billionaire activist investor Ron Burkle. It subsequently won a proxy battle waged by Burkle.

Riggio had said previously he was considering joining an investor group to buy the company. He already holds a nearly 30% stake.

Burkle is opposed to Barnes & Noble's poison pill plan, which limits shareholder stakes, outside of Riggio and other longtime shareholders, to 20%. Burkle has a 19% stake in the company and wants to expand his stake.

Barnes & Noble shareholders will vote on the poison pill plan at a special shareholder meeting on Nov. 19.

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